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The Pennsylvania Railroad
Company was the largest railroad in the United States in terms
of corporate assets and traffic from the last quarter of the
nineteenth century until the decline of the northeast's and
midwest's dominance of manufacturing, caused by the evolution of
the interstate highway system and the advancements in air
transportation. Originally created by Philadelphia merchants in
1846, it sought to build a trunk route from Philadelphia to
Pittsburgh via the Allegheny Mountains to compete for freight
traffic that by-passed Pennsylvania for New York via the Erie
Canal. From those humble beginnings, it stretched into an 11,000
mile system running through New York, Washington, Chicago, and
Saint Louis before reaching its final destination in 1970 in
bankruptcy court. In the ensuing years, the Penn Central
Corporation's holdings (created by a 1968 merger of the
Pennsylvania and New York Central railroads), along with a
number of other bankrupt railroads in the northeast were split
between the federally-created National Railroad Passenger
Corporation (Amtrak) for passenger rail assets and the
Consolidated Rail Corporation (ConRail) for freight traffic
assets. The remaining local rail routes were divided between
respective regional transportation authorities.